The issues paper outlines tax reforms to ensure fair resource returns, extend small business asset write-offs, support affordable housing, incentivise renewable energy investments, make superannuation concessions equitable, and enhance tax transparency through multinational reforms and compliance investments.
The Australian Treasury has released an issues paper on budget sustainability and tax reform ahead of the Economic Reform Roundtable to be held on 19–21 August 2025.
The Economic Reform Roundtable aims to build consensus on ways to improve productivity, enhance economic resilience, and strengthen budget sustainability. It will bring together a mix of leaders from business, unions, civil society, government, and other experts. The tax system plays a pivotal role in ensuring budget sustainability, working hand in hand with high-quality and efficient government spending.
The issues paper highlights various tax reform measures, including several that have already been approved, such as:
- Ensuring the Australian community receives a fairer return from its natural resources through reforms to the Petroleum Resource Rent Tax (PRRT);
- Helping small businesses to invest by announcing the extension of the AUD 20,000 instant asset write-off for a further 12 months until 30 June 2026;
- Supporting the construction of homes, including affordable homes, through new tax breaks for the build-to-rent sector;
- Supporting private sector investment to build a stronger, more diversified and more resilient economy powered by renewable energy through critical minerals and hydrogen production tax incentives;
- Making superannuation tax concessions more equitable and sustainable by reducing the tax concessions available to individuals whose total superannuation balances exceed AUD 3 million; and
- Improving tax transparency and integrity through multinational tax reform and investment in tax compliance programs.
